The ruling Democratic Party of Japan agreed Thursday to break a political taboo and raise the consumption tax in 2014 after Prime Minister Yoshihiko Noda entered the debate himself to iron out the tax panel's differences on the issue.
"I'm tackling this issue while believing this is the culmination of my political career," Noda said at the meeting, asking more than 100 lawmakers to clarify when to raise the sales tax under its reform plan.
The DPJ is discussing plans to comprehensively reform the nation's social security and tax regimes that would result in a two-stage tax hike. The tax rate would first rise to 8 percent from 5 percent in April 2014, and then to 10 percent in October 2015 to secure funds to support swelling welfare costs for the rapidly graying population.